Mining company Metals of Africa has completed the process of buying a grant of 9,000 hectares owned by Dombeya Mineração Lda. in northern Mozambique, the Australian company said Thursday.
The negotiation process for buying the license (No. 4118), for the Central Balama project was announced in the middle of last year, with Metals of Africa deciding to go ahead with the purchase after assessing the results of several studies, including a geological survey (“Versatile Time Domain Electromagnetic Surveying” or VTEM).
This analysis confirmed expectations that the concession, next to Syrah Resources’ graphite and vanadium exploration, has a large concentration of these minerals, over an area of 3 kilometres by 1 kilometre wide.
In a statement posted on its website, Metals of Africa said the purchase agreement involved payment of US$250,000 to Dombeya Mineração Lda. which will be paid in two instalments, the first of which, of US$50,000, has already been paid.
In addition, the Australian mining company will issue shares worth US$200,000 to be owned by the Mozambican company, the statement said, adding that the deal was not subject to capital gains tax.
In Cabo Delgado, several mineral projects have shown positive results for graphite and vanadium, including the three concessions operated by Australian mining company Triton Minerals, one of them (Balama Norte) “with world-class potential,” according to the company.
In this province of northern Mozambique, Metals of Africa holds the concession on the Montepuez Central block, which also has evidence of large concentrations of graphite.
In Mozambique, the Australian company also has a concession in the Rovué River, in Tete province, in the centre of the country, with potential for mining a variety of minerals such as zinc, lead and silver.
Among the company’s 20 largest shareholders, Transore International, with a focus on the transport and logistics sector, has the largest stake (5.94 percent). (macauhub/MZ)